Dataram Reports Fiscal 2016 Third Quarter and 9-Month Financial Results

PRINCETON, N.J., March 16, 2016 /PRNewswire/ -- Dataram Corporation (NASDAQ: DRAM), a leading independent manufacturer of memory products and provider of performance solutions, reported its financial results for the three and nine months ended January 31, 2016. 

Mr. Dave Moylan, Dataram's Chairman and Chief Executive Officer, stated, "In January we worked with investors to convert nearly $700,000 in 8% debt and accrued interest to equity, contributing to an increase in the Company's current ratio from 1.2 at fiscal year ended April 30, 2015 to 1.6 at January 31, 2016. The Company also exchanged the Preferred Series A shares for Preferred Series B shares, eliminating the 8% dividend associated with the Preferred Series A shares.  Our cash balance on January 31, 2016 of approximately $701,000 and shareholder equity of approximately $3.5 million reflects Dataram's improved financial strength."

Revenues for the three and nine months ended January 31, 2016 were $6.6 million and $20.0 million, respectively, which compares to $8.1 million and $22.7 million for the comparable prior year periods. The decline in revenues for the three and nine months ended January 31, 2016 was attributable to management's decision to discontinue an agreement to manufacturer an OEM branded line of consumer memory and also a decline in average selling prices.  Average selling prices have declined over 20% in the last 12 months as cost of raw material has declined due to oversupply.  The OEM branded consumer memory agreement was not profitable and did not align with the corporate strategy. 

The Company's operating income for the first nine months of fiscal 2016 was approximately $119,000 before recording non-cash expenses of approximately $666,000 in stock based expenses and approximately $122,000 of preferred dividend expense.  After recording these, the Company posted a net loss of $669,000. This compares to a net loss for the nine months ended January 31, 2015 of approximately $4.6 million, which included non-cash charges of $1.6 million for preferred dividends and $750,000 of interest expense for amortization of debt discount.  At the end of Q3 FY16, the Company had approximately $701,000 in cash and $3.5 million in stockholder equity as compared to approximately $327,000 in cash and $2.1 million in stockholder equity for the prior fiscal year ended April 30, 2015.

"During the last quarter, management introduced customized pricing and upgrade programs, broadened our solutions to align with emerging needs, and continued our geographic expansion in both Europe and Asia," continued Moylan.  "Revenue in the Europe has grown nearly 35% when comparing the third quarter of this fiscal year to last year's third quarter. We have also identified and are now pursuing acquisitions candidates that will provide significant growth to our emerging business segments."

***** Financial Tables Follow *****

* Items are recorded as a component of operating costs and expenses in the Company's financial statements filed with the Securities and Exchange Commission on Form 10-Q.

About Dataram Corporation
Dataram is a leading independent manufacturer of memory products and provider of performance solutions that increase the performance and extend the useful life of servers, workstation, desktops and laptops sold by leading manufacturers such as Dell, Cisco, Fujitsu, HP, IBM, Lenovo and Oracle. Dataram's memory products and solutions are sold worldwide to OEMs, distributors, value-added resellers and end users. Additionally, Dataram manufactures and markets a line of Intel Approved memory products for sale to manufacturers and assemblers of embedded and original equipment. 70 Fortune 100 companies are powered by Dataram. Founded in 1967, the Company is a US based manufacturer, with presence in the United States, Europe and Asia. For more information about Dataram, visit www.dataram.com.

All names are trademarks or registered trademarks of their respective owners.

The information provided in this press release may include forward-looking statements relating to future events, such as the development of new products, pricing and availability of raw materials or the future financial performance of the Company. Actual results may differ from such projections and are subject to certain risks including, without limitation, risks arising from: changes in the price of memory chips, changes in the demand for memory systems, increased competition in the memory systems industry, order cancellations, delays in developing and commercializing new products and other factors described in the Company's most recent Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, filed with the Securities and Exchange Commission, which can be reviewed at www.sec.gov.  The Company has based these forward-looking statements on its current expectations and assumptions about future events.  While management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control.  The Company does not assume any obligations to update any of these forward-looking statements.

Contact:
Robert Haag
Managing Director
IRTH Communications
866-976-4784
[email protected] 

Dataram Contact:
Jeffrey Goldenbaum
Director, Marketing
609.799.0071
[email protected]

SOURCE Dataram Corporation

Related Links

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